Need help with making sense of banking and borrowing.

[jani3]

I'm still in the research process of whether DVC ownership is for us or not. I thought I understood banking and borrowing until I came across this contract for sale and now I'm all confused again. This is what it has:

"170 pts, Aug UY, 243 current (140 pts banked from Aug 2014 + 103 points coming Aug 2015), 170 coming Aug 2017"

What confuses me is why borrow 67 pts from Aug 2015 rather than use up what was banked from 2014 first?

 

[KAT4DISNEY]

They might have borrowed and then cancelled a reservation or part of a reservation. If it was part of a reservation then you would want to use the borrowed points since they cannot be returned to their original UY and then free up current points that you could then bank if you were within your banking window.

 

[ColinBlair]

They may have borrowed 30 points from 2014 in 2013, banked the remainder of 2014, and then decided last minute to take another short Disney trip which meant they needed to borrow 2015 since the 2014 points were already banked. I do wonder why 2017 is mentioned there at the end.

 

[supersnoop]

"170 pts, Aug UY, 243 current (140 pts banked from Aug 2014 + 103 points coming Aug 2015), 170 coming Aug 2017"

That listing is confusing in so many ways. First of all, how are they "current" points if they're "coming" in August. And where is 2016? I think it's just really bad editing.

But, to answer the banking/borrowing question; they probably used all their 2014 points and borrowed 67 from 2015 to book a trip, and then cancelled it. This is where use year matters, because it provided some "insurance" for them. They cancelled the trip and were able to bank the current (2014) points into 2015. They must have used the 67 borrowed points, plus 30 current points, to take a shorter trip. I suspect all 2016 points are still available.

 

[jani3]

I do wonder why 2017 is mentioned there at the end.

Sorry, that's my bad editing. I just checked and it is for 2016, not 2017.


Okay, so I (think) I got it. If they borrowed the 67 points from 2015 to use with their 2014, then cancelled the trip, those 67 points are not bankable like the 2014 points. Then they had to use it before it expires on 7-31-2015. . Am I understanding that right?

 

[kristenrice]

Sorry, that's my bad editing. I just checked and it is for 2016, not 2017.


Okay, so I (think) I got it. If they borrowed the 67 points from 2015 to use with their 2014, then cancelled the trip, those 67 points are not bankable like the 2014 points. Then they had to use it before it expires on 7-31-2015. . Am I understanding that right?

Yes, that is correct. Banking and borrowing are final transactions. They move points into a different UY and points can only move once. Like a PP mentioned, this is where UY can provide a level of "insurance". If you bank or borrow to book a trip, and then need to cancel, those points expire at the end of the current UY. So, for example, we have a Feb UY so if we were to bank/borrow for a Christmas trip, and then needed to cancel, those points would expire on January 31. Let's say we canceled our trip on November 1, we would get all of the points back without the holding restriction, but we would have to book and complete a trip before January 31, which is HIGHLY unlikely. Since we typically do not travel any later than October, a Feb UY works well for us. I looked at the three months of the year that we are least likely to travel (and coming from Michigan, that would be Nov, Dec, Jan...too big of a risk of weather delays/cancellations) and picked a UY just AFTER that time.